Kress v. the United States

In this recent U.S. District Court case, the court brought some clarity to the often disputed area of corporate-level taxes when valuing S-Corporations.  In this case, the District Court ruled that an S-Corporation should be valued the same as an otherwise identical C-Corporation.  While this is not a precedent-setting case, it does provide meaningful guidance for valuation practitioners when valuating S-Corporations.

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2020 M&A Update

The 2nd quarter of 2020 represented the first full quarter of the Covid-19 Pandemic. During the quarter, we saw a dramatic decline in closed deals of middle-market private equity-backed transactions.  There were just 31 closed transactions during the quarter, which was down from 82 transactions during the first quarter and 78 transactions in the comparable quarter of 2019. Deal multiples remained stable, with EBITDA multiples averaging 7.4x in both the Q1 & Q2 of 2020.

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